Document Fragment View

Matching Fragments

Item No. 2 : was claimed under CTH 8418.99 with rate of duty of 65% + 45% + 40% + 15%; CIF value Rs. 16,547/- and duty of Rs. 34,527/-.
Item No. 3 : was claimed under CTH 8418.99 with rate of duty of 65% + 45% + 40% + 15%; CIF value of Rs. 3,40,121/- and duty of Rs. 7,09,718/-.
Item No. 4 was claimed under CTH 8413 with benefit of Notification No. 59/87 at rate of duty of 25% + 30% + Nil; CIF value of Rs. 2,03,420/- and duty of Rs. 1,13,000/-
The importer had paid a total duty of Rs. 22,42,019/- in respect of the above four items. The inquiry revealed that out of the 65 machines imported, 50 machines were for M/s. Voltas Ltd., Bombay and 15 machines were imported for M/s. Parle Exports Ltd., Bombay. The search authorities found these machines located at the godown of M/s. Voltas Ltd. as well as in the premises of M/s. Parle Exporters.
"POST MIX BEVERAGE FOUNTAIN.
122 pcs. Model: CTC-40-4 Complete with accessories Model: CTB-28-1 220 V/50 Hz Model: CTC-20-4-C/ W Flomatic Manual Value All the goods were claimed as refrigeration equipment classifiable under Customs Tariff Heading 8418.69 alongwith benefit of Notification No. 59/87, 151/92 and 154/92 at the rate of duty of 25% + 30% + Nil with a CIF value of Rs. 5387917/- and assessable value of Rs. 54,41,796/-.
The goods were examined in the presence of importer's representatives and statements were recorded from the Managing Director, Purchase Manager and General Manager of Voltas Ltd., Sr. Executive (Tech.) of M/s. Parle (Exports) Ltd., Regional Technical Manager of M/s. Pepsi Foods, Controller of Purchase of M/s. Voltas Ltd. and from one Shri U.R. Pradhan. The department alleged after the entire examination and investigation, that the goods imported vide the above two Bills of Entry were soft drink/soda maker dispenser and relied on the statements recorded from the witnesses in the case. Therefore, it was alleged that the goods were classifiable under Heading 8434.80 without the benefit of the said notifications claimed by the importer.

In conclusion, the ld. Collector has also imposed a penalty of Rs. 2500/- for the misdeclaration of the value of spares in the first consignment. However, he has accepted the valuation regarding the first consignment given to bottlers. As regards the second consignment he has held that the valuation will be accepted only after the finalization of the scrutiny by the Special Valuation Branch of the Customs House. He has dropped the proceedings against M/s. Voltas Ltd. and M/s. Parle Exports. The importers in this appeal are contending that once Heading 8418.69 is accepted then it follows that Notification No. 59/87 cannot be denied to the imported goods on the ground that they are composite goods performing three functions viz. refrigeration, carbonation and dispensing. They submit that the process of refrigeration is mentioned under Heading 84.18 but the process of carbonation or process of dispensing is not specifically mentioned under Heading 84.18. Thus, these two functions are also not specifically mentioned in any of the headings of Chapter 84 or 85. It is submitted by them that in these circumstances going by the examples given in the explanatory notes to the HSN, the goods may merit classification more appropriately under Heading 84.79 being machines whose individual functions are not specified or included elsewhere in this chapter. They submit that if the classification of the goods under Heading 84.79 is accepted, the exemption under Notification No. 59/87 would be available ipso facto . Thus, they submit, the imported machines would come under the category of machines for production of a commodity. Alternatively, they submit that if the goods were held to be not classifiable under Heading 84.79, but only under Heading 84.18, even then the exemption under Notification No. 59/87 cannot be denied to them. It is submitted by them that the imported item being a refrigeration equipment not being denied and its activity of carbonation and dispensing being ultimately connected with the purpose of delivery of the chilled liquid, the activity being part and parcel of the refrigeration, by itself is no ground to deny the benefit available to refrigeration equipment. They submit that by this , process or by incorporating such specialised features, the equipment does not cease to be a refrigeration equipment. They submit that the refrigeration equipment falling under Heading 84.18 or under Notification No. 59/87 is used in the generic sense and all the species of the refrigeration equipment are covered under the generic entry. They submit that it is well settled law that where an entry specifies a generic entry, it covers all species in all forms. In this connection, they rely on the ruling rendered in the case of Pradhan Industries, as reported in 1992 (62) E.L.T. 756. Reliance is also placed on HSN Explanatory Notes at page 1170. They submit that the terms used in an exemption notification, unless they are specifically or differently explained in the notification itself, would have the same meaning assigned to it in the main tariff. On this principle, they rely on the provisions of Section 20 of the General Clauses Act.